Insurances.net
insurances.net » Mortgage Insurance » Buying Off The Plan caveat Emptor
Auto Insurance Life Insurance Health Insurance Family Insurance Travel Insurance Mortgage Insurance Accident Insurance Buying Insurance Housing Insurance Personal Insurance Medical Insurance Property Insurance Pregnant Insurance Internet Insurance Mobile Insurance Pet Insurance Employee Insurance Dental Insurance Liability Insurance Baby Insurance Children Insurance Boat Insurance Cancer Insurance Insurance Quotes Others
]

Buying Off The Plan caveat Emptor

Buying Off The Plan caveat Emptor

Buying off-the-plan real estate is often pitched by marketers as a win win investment But

, how safe is buying property sight unseen? Leading Melbourne Mortgage Broker What If We Finance provide some advice below for you to consider.

Certainly people have made great returns buying real estate before it is completed. Some have on-sold their properties at a good profit before ever having to settle, but these are usually more exclusive properties close to major cities, where demand is strong.

There have also been many instances of people paying far more for an off-the-plan property at settlement than they could hope to attain in the prevailing market. Melbourne Docklands apartments, where oversupply drove down prices, are a prime example of where this happened.

Buying off the plan is undoubtedly a leap of faith and the dangers are twofold. Buying Off The Plan caveat Emptor


First you have to believe that the property you can only see on a plan will eventuate exactly as specified within a certain time. If, like most of us, you do not find it easy to envisage exactly what you will get, it's probably worth getting help from an expert. Even if there is a display suite, it may not be truly representative of the finished product.

One service you could consider is from a building inspection service such as Archicentre, the building advisory service of the Royal Australian Institute of Architects, which provides advice on plans. These reports include things like an opinion on whether the rooms are of a reasonable size, the quality of the fixtures and fittings and the layout.

When building is completed, before you fork out your money to settle, Archicentre can conduct a practical completion inspection, including checks of the area of the building against the plans, confirmation that the promised fixtures and fittings have been included, and comments on the overall standard of the building.

Other precautions you should take include as advised by Melbourne Mortgage Broker What If We Finance include:

* Only buy from developers with a good reputation and whose work you can see.

* Make sure every detail is specified in the contract, including fixtures and fittings for example, not just a stainless steel oven, but a particular brand and model.

* The second major pitfall relates to price. It's difficult to establish whether the asking price is fair when there are no benchmarks. "Buy tomorrow's real estate at today's prices" is the spiel of the marketers. That assumes property prices always rise, which of course is not the case. For example, if you bought a unit off the plan three years ago in Sydney's outer west and are settling on it now, it is likely to be worth less than you are paying.

* With investments be very suspicious of rental guarantees, which can be used to set artificially high prices. For example, if gross rental returns are 10 percent in an area and the vendor guarantees a $400 a week rental, that would price a property at $208,000. But say that market rent is really $350 a week, meaning it's only worth $182,000. If you fall for this, you would pay 12.5 percent above market. The vendor only has to pay $5000 to guarantee the extra rental for two years and score an extra $26,000, or $21,000 net.

These are a few tips for more information contact What If We Finance for more information.

by: WIWF
Conveyancing - What Is Conveyancing? How To Write An Effective Mortgage Modification Hardship Letter How To Negotiate A Loan Modification With Your Lender How Loan Modification Can Stop A Foreclosure Are You Falling Behind On Your Mortgage - Loan Modification Can Help What Are The Keys For An Effective Loan Modification Hardship Letter Mortgage Modification - What You Need To Know Do It Yourself Loan Modification - What You Need To Know Can Loan Modification Stop Foreclosure Discover Secret Keys To Wealth And Prosperity How To Decide If You Should Refinance All About Successfully Refinancing How To Write A Mortgage Modification Hardship Letter
Write post print
www.insurances.net guest:  register | login | search IP(54.226.222.183) / Processed in 0.013208 second(s), 6 queries , Gzip enabled debug code: 26 , 3484, 965,
Buying Off The Plan caveat Emptor